This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

3 Top Picks in Regional Banks: Oppenheimer

PVTB ChartPVTB data by YCharts

2. PrivateBancorp

Shares of PrivateBancorp (PVTB) of Chicago closed at $19.14 Monday, returning 25% this year, following a 40% return during 2012.

The shares trade for 1.3 times tangible book value, and for 13.3 times the consensus 2014 EPS estimate of $1.44. The consensus 2013 EPS estimate is $1.36.

The company reported first-quarter net income available to common stock holders of $27.3 million, or 35 cents a share, increasing from $20.0 million, or 26 cents a share, in the fourth quarter, and $10.8 million, or 15 cents a share, in the first quarter of 2012.

Net interest income for the first quarter was $103.0 million, declining from $104.8 million the previous quarter and $104.4 million a year earlier. PrivateBancorp's net interest margin for the first quarter was 3.19%, widening slightly from 3.16% in the fourth quarter, but narrowing from 3.53% in the first quarter of 2012.

The main factor in PrivateBancorp's significant earnings improvement has been a decline in credit costs. The company's first-quarter provision for loan losses was $10.4 million, declining from $13.2 million the previous quarter and $27.7 million a year earlier. The company also saw a decline in costs to maintain foreclosed real estate to $6.6 million in the first quarter from $9.6 million in the fourth quarter and $8.2 million in the first quarter of 2012.

In a note to clients on April 18, McEvoy wrote that "the transition from credit recovery to growth is firmly under way," and that "earnings in '13 will continue to benefit from lower credit and real estate-related costs.

"While many small-cap banks are struggling with earnings growth, we forecast EPS growth of 10% in '14," McEvoy wrote, adding that "this should translate into a higher valuation for PVTB, supporting our $21 price target."

McEvoy estimates PrivateBancorp will earn $1.32 a share this year, with earnings increasing to $1.45 a share in 2014.

Interested in more on PrivateBancorp? See TheStreet Ratings' report card for this stock.

3 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 17,083.80 -2.83 -0.02%
S&P 500 1,987.94 +0.93 0.05%
NASDAQ 4,472.1080 -1.5890 -0.04%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs